enforcement is not the immediate issue. the immediate issue is the chief financial officer of huawei was detained by the canadian authorities. on our request. they now have released her on bailthey have now released her m jail with conditions, security cover, and restriction of movement. the next immediate topic is before the canadian courts. that is whether or not they are prepared to extradite her to the u.s. if there is to be an enforcement proceeding, it would he a u.s. receiving, not a canadian one. fairlyue right now is a narrow one of her physical presence and will they permit us to extradite her to the u.s. is whether orer not there were sanction violations, whether or not there

were misleading statements the banks. those are factual issues that will be dealt with if and when she is extradited to the u.s. it strikes me, for example, in the case of zte, by and large, we have gone against corporations. do we go again senior officers now? bel u.s. corporate officers gone against other governments? >> it is not correct that the zte case only went after the corporation. the final resolution of the case, we required a change in the board of directors of the company. we required a whole number of executives be released from the company. and we imposed a monitor with very wide-ranging powers on the affairs of the company. i wouldn't say that it had nothing to do with the

individuals. zte was feared david: but there was no criminal indictment of an individual at zte. parte criminal indictment of this would be handled by justice. as you have seen from media reports, there is a view that perhaps she engaged in some sort of bank fraud. that would not be part of commerce's enforcement. our part of the enforcement would be strictly did the company violate the iranian sanctions or did they not? or if they did, what remedies should we choose? david: let me ask you something , thewe might overlook united states-mexico-k canadian -- united states-mexico-canadian agreement.

when will that be inactive? byit needs to be approved congress. at the executive branch level, it has been done. there is a whole process for getting this through the congress. clearly, that will be dealt with by the new congress. it will not be dealt with in the lame-duck session. there simply isn't enough time under the statutory notice periods under the lame-duck. so the new congress will do what it wishes. i think they certainly should ratify it. it is a clear improvement over nafta. even people who have voiced concerns about it don't seem to deny that it is a better deal for the u.s. of them nafta. the rules of origin are much better. they are environmental features are much better and more

enforceable. the labor provisions, much better and enforceable. intellectual property rights, much better and enforceable. financial services, much better don't with. natural resources will don't with it is -- well dealt with. imaginerd for me to anyone who voted for the old nafta, i can't imagine that anybody who voted for nafta would not vote for usmca. clearly improvement of substantial magnitude beyond nafta. david: thank you so much. always good to have you with us. that as commerce secretary. wilbur ross. get the latest. emma: the s&p 500 and nasdaq now

in the red. the dow jones up only by put 1%. we have seen a lot of seesawing action. , half of the sectors in negative territory. is that the conviction in the market is missing in action as investors work on what is happening in the trade dispute between the u.s. and china. it's feeling a little bit like groundhog day. 500, over five days, each session we started with gains and struggled to hold onto those as the session has worn on. looks like we will see more of the same today. we are halfway through, so

things could turn around. at the moment, it looks at we are headed for the downward. look at what is moving today and what is losing today. you've got the usual suspects, financials. this is retail in a bit of a slump today. allit is across the board, down today by more than 4%. analysts not really liking some of the growth and profit targets. look at the euro versus the dollar, falling today. david: on the return a, greg ferro is here in new york on the prosecutions that may pose president trump. washington, nancy pelosi's return to speak of the house.

when we spoke yesterday, it was all about mr. cohen. then there was a david pepper situation after we got off the air. >> michael cohen, one of the -- thepleas, was the the payment to stormy daniels. there was a second payment to a playboy model and i had to do with the national enquirer. well yesterday's nonprosecution davident was that the ceo or had been cooperating with prosecutors in the southern district. paymentswere any other from the trump campaign, prosecutors know about that. prosecutors are staying on this campaign-finance violation trail. that might lead it to other directions. david: i were to brussels now where we know prime minister theresa may has shown up. she is try to get some release -- relief that she is trying to

get some relief. >> that's right. she wants concessions, legally binding concessions on the irish border, a guarantee from eu leaders that the backstop will not be used. that is the mechanism to start a physical border. she appeared to say that i am not looking at the next general election. by only focus is to get exit done -- my only focus is to get brexit done. still thinkoday this is a base case scenario. there will be a deal by march 29. brexit, perhaps will have to wait until january.

heard them say we can't take away some language, but we are not changing the basic deal. is it possible that they will go further than that? or that some basic changes my get past parliament? >> there is no appetite whatsoever from eu leaders to open up the negotiation again. the withdrawal agreement, that is a legally binding deal with which written would leave the european union. very simply, they don't think that u.k. can afford to go no deal. some language could be added, but not to the binding deal. maybe what we could argue is that the future relationship will be so great and so ambitious that we don't need the backstop because there will be a trade deal in place by the time you leave.

david: many thanks. they'll is go to washington. have a new speaker of the house on, although it is not really a new one. >> right, nancy pelosi is poised to return to speaker of the house. this really became solidified less light after she struck a deal with some of her opponents. votes,her six more enough to get her the votes to win the speakership on the floor when the vote comes in january. under the terms of the deal, she would limit herself the two more terms two more two-year as speaker. it probably doesn't change your plans that much since she has only been in congress alone. long. -- in congress so david: thank you. we talk with maggie hassan next. this is bloomberg. ♪

power this is balance of on bloomberg television. we turn to mark crumpton. mark: president trump says he never told michael cohen to break the law. on twitter today, he said that he was supposed to know what the law is. pledso said that cohen guilty to two wl campaign charges that were not criminal just to embarrass the president. the president and the new leader of mexico spoke iphone this week. they discussed the need to adjust illegal migration from central america to the united

states. the two countries have been working to find a solution for the caravans of central american thought -- central american migrants. today on avotes resolution aimed at withdrawing u.s. support for saudi arabia's military campaign in yemen. it is designed to punish the saudis for the killing of jamaal khashoggi. the white house has threatened a veto. france authorities say a yellow vest protester has been killed. href driver was arrested after he tried to flee the scene. five others have been killed and 14 others -- 1400 others injured since last month. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over

120 countries. i'm mark crumpton. this is bloomberg. ♪ david: thanks very much. four senate democrats representing states that don't have sales tax have unveiled their own online sales tax bill to protect the smaller online sellers across the country. one of them is. maggie hassan from new hampshire. tell us about this bill. recently saidurt that individual states can impose sales taxes on electronic sales. ,ut you are addressing that ameliorating it for smaller businesses. >> that's right. the supreme court decision, the wayfair decision, is a backwards decision. in new hampshire, we don't have a sales or income tax. we have structured our whole economy around that.

we have lots of small businesses that would have to all of a sudden deal with the red tape and commuter desk computer systems -- computer systems to collect tax for other states even though we don't have one. things. do three first and foremost, if you are a retailer or a business of any kind with sales of $10 million or less, you are exempt from the wayfair decision. you don't have to collect sales tax for some other take -- other state. second, there is no retroactivity applied by the supreme court decision. so you don't have to worry about putting past sales taxes. small businesses have time to prepare for this. there are thousands of sales taxes jurisdictions across the country. in newmall businesses hampshire have to deal with the different rules and regulations for each one of those thousands

of jurisdictions, it is a huge burden on them and will undermine their capacity for growth. that is what this is about. we feel strongly that the decision was a bad decision to begin with, but we need to protect our small businesses, especially right now at the height of their holiday retail season. david: thank you for a very clear explanation. it makes a lot of sense. at the same time, everyone has to wonder what is the likely of in thisany other bill more divided congress? you got a bigger majority for republicans in the senate. we just saw something in the oval office this week between the democratic leadership in the congress and the president in the united states. it did not give us a letter believe that they will get along, as it were. >> i have been talking with the people of new hampshire. on tv, weat they see actually do work across party lines in washington.

everything from the opioid bill and the budget agreement, which are in effect for most of the government right now. very -- it was very disappointing this week to watch the president in the oval office , playing games at the expense of the american people, of our well-being, by demanding a wall that most people think is not the best way to secure our border and threaten a shutdown if you does not yet it. we have a bipartisan agreement 2018-2019.year we have a lot of agreement about what this last piece of the budget for this next fiscal year should look like. i think there is great capacity if the president will stop playing games for us to get this done. 25% of the government is

what we are talking about. what is your best guess? you can count votes? . will we have that partial government shutdown or not? >> that is up to the president. he is the one who is saying he wants to shut the government down. the american people don't want him to. the american people along with members of both parties understand that border security is critically important. it is certainly important in my state of new hampshire where we are dealing with the ravages of a phenyl epidemic -- a fentanyl epidemic. the border patrol agents are telling us we need more technology, more personnel emma more immigration judges, strategically placed fencing and other barriers in certain parts of our border. but there is a solution here and

there -- and it is up to the president to decide he wants to solve this problem is that are playing games. d a lot of people are talking david: a lot of people are talking about 2020. give us a sense from the democrat side what you think will happen in this process? we sought on the room look looking -- on the republican side. the democrats want to avoid that sort of thing or do they think it is a healthy process? right now, after a state election where democrats came out and flipped our house, our senate, and the executive , we are really energized. what is important to all new hampshire citizens, including new hampshire democrats, is we

put out the welcome mat and have all of these candidates into our state so they can get the kind of experience that comes with meeting face-to-face with granite stators that are very well-informed, ask tough questions, and are willing to share their personal stories about what their struggles are, what they are challenged by. most people in new hampshire talk to me about the fact that, if you work hard, you want to be able to get ahead and stay ahead. you want to know that you can afford childcare and have a home in a 60 minute he. you want to know -- a home in a safe community. you want to know that you can save for college and that a health care bill won't bankrupt you. that is what i hear about. that is what they are focused on. they want us to solve problems just like they do in their daily lives. i am it your for our candidates to come into new hampshire and listen to our people and be

clues to buy them. i think that -- and be quizzed by them. i think that helps them to become better leaders. david: that was very helpful. >> thank you for having me. david: still ahead, the stock of the hour. we are looking at cultural stocks and a trade war resolution. this is bloomberg. ♪

david: you are watching balance of power. time for the stock of the hour. mosaic is the company in the crosshairs, but they are good crosshairs. emma: mosaic seems to be capturing more of a bid than other agricultural companies with the news that china has bought more soybeans. they fell by more

than 6% yesterday, but they are rising today. yesterday, they caught a downgrade from j.p. morgan analysts. china will export more fertilizer. today,s about soybeans that suggests there is more of a maneuver between the us and china. the exportsan see from china plummeted and the stock went just like that. that we see it in companies that actually make the soybeans. otheryou would expect companies to be rising today, but they are not really. this chart shows that stockpiles of soybeans are rising. they are expected to double by august. when china made those purchases,

the market was expecting about 10 million metric tons. 30a normal year, they buy million metric tons. david: you heard wilbur ross a that it is a down payment. there is more to go. the market is waiting to see the next payment come through. next, wall street is shrugging off the possibility of a christmas shutdown. what the funding fight signals. talk with -- this is bloomberg. ♪

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leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. ♪ david: this is balance of power on bloomberg television. for a bloomberg first word news, we go to mark crumpton. mark: pro-european ministers and theresa may's cabinet is trying

to come up with a brexit they can live with. they want pro -- they want her to force parliament to vote on outcomes. there's no maturity for any kind themvorce so they can get to agree to a compromise. extremeunder very negative scenarios for brexit, looking at the banking system, we don't believe that even under scenarios, the viability of some of these financial institutions is at risk. mark: french and security forces say they want to catch a man that attacked a christmas market near strasburg dead or alive. 13 people were wounded. a government spokesperson said that more than 100 officers are

involved in the manhunt. a terror investigation has also been launched. at least nine people were killed, more than 80 others injured when a passenger train collided head-on today with a maintenance locomotive in turkey. the crash pushed to carriages of the train off the tracks where they smashed into an elevated walkway, causing it to collapse onto the train. three people have been arrested. underway.gation is the justice department watchdog has found no evidence the f the i -- the fbi intentionally destroyed text messages of officials involved in the hillary clinton investigation. an fbi-wide software failure was faulted. gaps's report involves from the phones of peter struck

and lisa page. this is bloomberg. ♪ -- global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ david: a possible government shutdown is back on the agenda. president trump renewed his threats with a vengeance when he confronted nancy pelosi and chuck schumer in the oval office over his demand for a border wall. ,> if we don't get what we want one way or the other, whether it is through you, through the military, through anything you want to call, i will shut down the government. >> ok, that's enough. we disagree. >> i am prepared to shut down the government for border security, chuck, because people of this country don't want people who are criminals and have lots of problems and drugs pouring into this country. isaac, i don't think many

through feeling positive. >> that is tough video to follow. it is wee are viewing have not made any substantive progress towards resolving the funding question. the deadline is by the end of next week. i don't have any clients, either hedge funds are mutual funds, who particularly care about this funding fight. there is a belief that it is only partial. so if it does occur, it will not have a significant impact. fumes and this push to get out of d.c. by the christmas holiday will in sent -- insent a deal. david: the s&p has gone up, not down. the markets seem to not react

adversely too much to the sorts of things. >> and they shouldn't. right now, with 75% of the government funded, we will get a deal, if only because lawmakers want to get out of town. what concerns me is not this particular funding fight. it is what it signals for the year ahead. the return of legislative brinksmanship when it comes to fiscal deadlines. that matters for markets is the debt ceiling is back and play in 2019. david: now you are talking. . markets do tend to react to that. the debttial issue on ceiling, that could result with the u.s. government defaulting. that is a problem. do we know when that might happen? what are the real prospects at this congress could get a check together with the president to address the debt ceiling? >> the technical deadline is march 1 of next year. but at that point, the treasury

has the potential and capacity to use what is known as extruder measures, which have become all too ordinary -- as extraordinary measures, which have become all too ordinary. it will be his summer, possibly the following we harden the hard dead's -- hard debt ceiling headline. it is hard to feel optimistic. we have not even ramped up were i think -- what i've think will be the fuel the fire, which will be a slew of the hearings in the house into the president's actions. david: we spoke with wilbur ross about the progress on the china negotiations. that certainly is of great importance to the markets and investors. they've made progress on some of them.

do you have any sense of where we are in that process? how likely we will end up with a deal with china that will take the threat of tariffs and other sanctions off the table? >> it is incredibly difficult to envision how we get a conference 1, especiallych when we are about incredibly complex and contentious things, like intellectual property and state subsidies and force transfers. my base case is we get just enough in order to punt that deadline into the spring. the secretary said we are starting to see down payments on the agreement. as your last segment showed, that's nice, but not sufficient to convince the market that a deal is there. of the issuesdful with nafta. it took a long time.

many ways, that seems to have been a less confrontational, less set of agreements than the china one. how long might this take? >> the biggest question is, at what point will the president simply be willing to take whatever deal is on the table and oclaro victory and move on -- and clear victory and move on? i don't think there will be a beneficial resolution. it's a question of when will this trade war stop being prosecuted? one where wet is will have another punt by the march 1 deadline and into the spring. david: isaac, thanks so much for being with us today. coming up, he runs one of the largest media companies in the world. is competing with others that are getting bigger and bigger -- and he is competing with others

that are getting bigger and bigger. that is next. this is bloomberg. ♪

david: you are watching balance of power. yesterday, i sat down with the ceo of discovery and how his company fits into the media world that changes every day. >> we are trying to play in a space that others are not playing. so when we pulled scripps into discovery, we became the second-biggest tv company in america in terms of our reach across television and audience. we have great brands the people

of. we had it at discovery. scripps had it. when you put it together, we have three of the top channels in america for women, food, hg, id. we are the -- we have the top channel for african-american women, the number one channel for men. people that watch hdtv or food or id, they watch it in a way that people who like fox news might watch it. so it becomes a home for them. nonfiction area in the u.s., we have great brands. we are fighting to make them better. we are competing, if you want to call it that, because we are in a traditional sense, with entertainment companies.

we create an ecosystem on the tv set. but we are very different when it comes to direct the consumer. whether it be hbo or showtime on netflix or what bob iger is looking to do with this great deal he did with fox, aggregating a great amount of i.t., all of that site is scripted movies and service. there is lots of consumers, domestically and around the world, that have a choice of four or five or six places to go for between $10 and $15 to get scripted movies and service. and a lot of movies are appearing on those platforms. if you want something else, that's us. we are a global ip company. home,discovery, food, crime with this deal that we did with golf, outside of the u.s.,

we own the pga tour with jay monahan. we are in business together everywhere in the world outside the u.s. today, we announced we did a deal with the european tour, which includes the ryder cup. two weeks ago, we announced tiger woods. david: i saw you on social media. >> i got the most likes. the strategy is all the same. how do we do the business we are doing, which is still a growth business for us, where we have all these channels and cable around the world? how do we take all the ip we own and get above the globe? david: you've got a lot of rage, a lot of content. i think there is a wide perception you are on a melting iceberg. you came from basic cable. basic cable is no longer an overall increasing business. there's cord cutting.

how do you make the jump from that melting iceberg and where do you jump to? >> not the way i would like to refer to it, but broadcast has been a melting iceberg since 1992 and broadcast is still doing pretty well. directionally, i think you're correct. there is some secular decline, particularly in the u.s. where 3%.e is declining outside the u.s., cable is still growing 2%. part of that has to do with the fact that cable is so expensive here, because all of the sports is in the entry-level. but directionally, you are correct. people are consuming more tv.ent but watching this on the way we are doing it is probably more aggressively than anyone else and we have a bigger bet than anyone else. all the content that we own, whether it is food, home, travel, natural history with discovery, oprah content, car content -- we own all that content, that ip, everywhere in

world. if we set down with apple tomorrow or google and said let's do a natural history offering locally, week -- globally, we could start next tuesday. the deal that we did with the pga, we on the pga of america, the top tour, together with the asian pga and latin america pga and now the european tour. we own that above the globe. so we do see ourselves as a global ip company. there is a big difference between we icr company in terms of sustainable -- i see our company in terms of sustainable future. industry is down 30% to 40% because of terminal value. we view ourselves as a global ip company. that is what we are doing with sports in europe, globally with the pga. you will see us start to take our content out, either with

regional players are global players, because we can. david: you said it. direct to consumer is what everyone is tracked to get to. licensing toat, other people who are doing distribution, or do you need to do your own dissolution, the way bob went out and bought one? >> there are different ways to do it. we are doing it with cars. we have motor trend on-demand product. player.a eurosport we built of those platforms ourselves and they are scaling up. in the end, you need both. if we did natural history natural, we can offer history offering our food offering globally and do pretty well. at&t, we got verizon and both of whom have over 100 million phones, to drive that to their customers or, if we got a

faang company to drive it for us or cable companies around the world -the advantage of having so many drive it for you is- apple has 600 million credit cards already. liberty glover -- liberty global in europe is billing. the real scalability we think is great i.t., but then piggyback on regional players are global players. then you can really accelerate your overall growth. createdt the end, it is can't -- creative content. you describe this new world. you reported that you are having issues with discovery channel, the main mothership. how do you adjust accretive aspect in this new world where it can't just be one program your programming.

figuring out how to create great content with stories people care about and characters they love is what we do at discovery. scripts, food on was down 15%. today, discovery is down. last quarter, discovery was up. that's not my concern. we have one of the best creative teams in the business. niche, so wehem by have 18 that really understands food and how to pray great content around food, and natural history. we have 18 channels. so we will have a child that is up or down. we are ip long. we own all the content. the reason we did scripps is we view that as a massive ip acquisition. we own all the travel content,

the food content, the home content. most companies on the stuff for the u.s. and in they sell it off. the fact that we own it all, if we are going to be successful, we have to get the phone companies to put our content on their mobile space -- mobile screens. and we will have to get people to start paying us for things i or cycling. if i come back here next year we have 5 million subscribers, that could be worth a massive amount of money because there is no terminal value issue there. you have credit cards. you have people who are not the -- not just super fans of the cable channel. they are in business with you for the long-term. david: it sounds like john malone treating the cable system. >> he affected that strategy with stars.

john bought all the rights to the premium movies. at the time, he said to me, some day, those rights will be worth more than starz. for us, we look in each of our baskets. we spend more money to own all of the content. but the way the faang companies are needing more content, with a mobile players are needing more content, in the long-term, we think we can be the big winners because we have a global ip. here, wilbur up ross's thoughts on china trade and what investors might make of those thoughts. that is coming up next. this is bloomberg. ♪

david: this is balance of power on bloomberg television. earlier, i spoke with wilbur ross and got his take on

u.s.-china trade negotiations. he started by saying how they categorize them. >> categories they feel are off the table, one is categories they claim to some degree or another they have already addressed. the third, a quite large category, items they are prepared to address. we have a pretty good roadmap of what the issues are. david: how the markets may or may not have reacted. do the markets. believe him? was looking have the s&p in the dow were moving. i have the intraday chart for the s&p 500. roundabout 12:00, just as you are talking to secretary ross, we saw the market take a leg lower. wilbur ross did go on to say

that they need to do a lot more, that the preliminary things they have done will be enough. are morehe markets persuaded by the negative than the positive. david: he said they have made a down payment, by more so brains -- soybeans and more lng. said to be between 25 million metric tons and million metric tons. yes, they see these moves, baby steps, but the market was to see more of a leap. david: it also seemed like the --e is best :00 is ticking the clock is ticking. emma: probably because they can

see the markets are paying close thistion, certainly over past week, we have looked at every day and we had a gain in the market. a lot of that has been attributed to the trade dispute. much. thanks so sign up for the balance of power newsletter. get the latest on markets in your inbox every civil they. coming up, alix steel talks with andy hall. don't miss that exclusive interview at 1:00, right now. this is bloomberg. ♪

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opec cuts volatile prices, more hedge fund closures. higher capex budgets. we sit down with legendary investor alex hall. -- andy hall. this is bloomberg commodities edge. welcome to a special edition of bloomberg commodities edge. focus on the hottest commodities with the smartest voices in the business. our topic today is crude. it is gotten harder for